Watts Bar, Unit 2
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Tennessee Valley Authority, 1101 Market Street, Chattanooga, Tennessee 37402 CNL-15-211 September 29, 2015 10 CFR 140.21 U.S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, D.C. 20555-0001 Watts Bar Nuclear Plant, Unit 2 Construction Permit No. CPPR-92 NRC Docket No. 50-391 Subject: WATTS BAR NUCLEAR PLANT UNIT 2 - FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS - INSURANCE STATUS SECOND SUPPLEMENT References: 1. TVA Letter to NRC, CNL-15-176, “Watts Bar Nuclear Plant Unit 2 - Financial Protection Requirements and Indemnity Agreements - Insurance Status,” dated August 26, 2015 (ML15238B694) 2. TVA Letter to NRC, CNL-15-202, “Watts Bar Nuclear Plant Unit 2 – Financial Protection Requirements and Indemnity Agreements – Insurance Status Supplement,” dated September 24, 2015 [ML15268A528] In a discussion with the NRC Staff on September 28, 2015, the Staff requested documentation, in addition to that provided in the referenced letters, regarding financial protection for Watts Bar Nuclear Plant Unit 2. Specifically, the Staff requested documentation that addresses the requirements of 10 Code of Federal Regulations (10 CFR) § 140.21(e). The enclosure to this letter describes TVA’s compliance with the applicable regulatory requirements regarding the annual certified financial statement. There are no new regulatory commitments contained in this submittal. Please contact Gordon Arent at (423) 365-2004 if there are questions regarding this submittal. I declare under penalty of perjury that the foregoing is true and correct. Executed on the 29th day of September 2015. Respectfully, Digitally signed by J. W. Shea DN: cn=J. W. Shea, o=Tennessee Valley Authority, ou=Nuclear Licensing, J. W. Shea [email protected], c=US Date: 2015.09.29 11:24:01 -04'00' J. W. Shea Vice President, Nuclear Licensing Enclosure cc: See Page 2 U.S. Nuclear Regulatory Commission CNL-15-211 Page 2 September 29, 2015 Enclosure: TVA Compliance with the Requirements of 10 CFR § 140.21(e) Attachments: 1. Certificate of Compliance with 10 CFR § 140.21(e) 2. TVA Annual Report Form 10-K for Fiscal Year 2014 cc (Enclosure): NRC Regional Administrator – Region II NRC Senior Resident Inspector – Watts Bar Nuclear Plant, Unit 2 NRC Project Manager – Watts Bar Nuclear Plant, Unit 2 ENCLOSURE Watts Bar Nuclear Plant Unit 2 TVA Compliance with the Requirements of 10 CFR § 140.21(e) The NRC Staff requested TVA provide documentation demonstrating how it guarantees the payment of deferred premiums for Watts Bar Nuclear Plant (WBN) Unit 2, as required by 10 CFR § 140.21(e). The requested documentation is attached, and is described below. TVA provides evidence of its guarantee of payment by demonstrating sufficient cash flow for payment of retrospective premiums pursuant to 10 CFR § 140.21(e). TVA supplies this evidence annually for its six operating units, including most recently in the referenced letter. Because WBN Unit 2 was not operating at the time of TVA’s most recent annual report on Form 10-K, WBN Unit 2 is not among the units listed in the reference. Accordingly, a certificate signed by TVA’s Vice President and Treasurer is attached (Attachment 1) to provide evidence of sufficient cash flow for payment of retrospective premiums. TVA’s most recent annual report, cited in Attachment 1, is attached as Attachment 2. Reference: TVA Letter to NRC, CNL-15-051, “Guarantee of Payment of Deferred Premiums – 2014 Annual Report,” dated April 3, 2015 (ML15097A469) Attachment 1 Certificate of Compliance with 10 CFR § 140.21(e) Attachment 2 TVA Annual Report Form 10-K for Fiscal Year 2014 Section 1: 10-K (10-K) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (MARK ONE) ANNUAL REPORT PURSUANT TO 13, 15(d), OR 37 OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended September 30, 2014 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission file number 000-52313 TENNESSEE VALLEY AUTHORITY (Exact name of registrant as specified in its charter) A corporate agency of the United States created by an act of Congress 62-0474417 (State or other jurisdiction of incorporation or organization) (IRS Employer Identification No.) 400 W. Summit Hill Drive Knoxville, Tennessee 37902 (Address of principal executive offices) (Zip Code) (865) 632-2101 (Registrant’s telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: None Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No Indicate by check mark if the registrant is not required to file reports pursuant to Section 13, Section 15(d), or Section 37 of the Act. Yes No Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13, 15(d), or 37 of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes No Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. Large accelerated filer Accelerated filer Non-accelerated filer Smaller reporting company (Do not check if a smaller reporting company) Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes No 1 Table of Contents GLOSSARY OF COMMON ACRONYMS....................................................................................................................................................................................................... 4 FORWARD-LOOKING INFORMATION......................................................................................................................................................................................................... 6 GENERAL INFORMATION............................................................................................................................................................................................................................ 7 PART I ITEM 1. BUSINESS...................................................................................................................................................................................................................................... 8 The Corporation................................................................................................................................................................................................................................. 8 Service Area....................................................................................................................................................................................................................................... 8 Customers.......................................................................................................................................................................................................................................... 10 Rates.................................................................................................................................................................................................................................................. 11 Power Supply...................................................................................................................................................................................................................................... 12 Cleaner Energy Initiatives.................................................................................................................................................................................................................. 20 Fuel Supply......................................................................................................................................................................................................................................... 21 Transmission...................................................................................................................................................................................................................................... 24 Weather and Seasonality...................................................................................................................................................................................................................